Co-op Bank confirms Coventry Building Society takeover

Following discussions starting in December, the deal was confirmed today, with completion expected to take place early next year.

Under the deal's terms Coventry will pay £780m for the bank, with up to £125m deferred for up to three years subject to the performance of Co-op Bank during that period.

The joint statement issued by both parties said that the Co-operative Bank board had discussed whether or not a member vote on the deal was required and 'conclusively determined' it was not following focus groups and member surveys.

Chairman of Coventry Building Society, David Thorburn, said:

"I believe this is a transformationla moment for members and customers of the Society and The Co-operative Bank. We're building on our shared heritage and creating a stronger mutual business that will deliver in the best interests of our current and future members."

Chief executive office of Coventry Building Society, Steve Hughes, commented:

"By bringing together Coventry Building Society and The Co-operative Bank we will be able to deliver more value to more people in the coming years. I am excited about the opportunities that lie ahead, most importantly our ability to sustain the great value and outstanding service that matters most to our members."